Allowance for Loan Losses and Credit Quality Information (Tables)

3 Months Ended

Mar. 31, 2016

Schedule of Allowance for Loan Losses and Loan Balances

The following tables provide the activity of our allowance for loan losses and loan balances for three months ended March 31, 2016:


(In Thousands)	Commercial			Owner-Occupied Commercial			Commercial Mortgages			Construction			Residential			Consumer			Complexity Risk ⁽¹⁾		Total
Three months ended March 31, 2016
Allowance for loan losses
Beginning balance	$	11,156		$	6,670		$	6,487		$	3,521		$	2,281		$	5,964		$	1,010	$	37,089
Charge-offs		(179	)		—			(17	)		(26	)		(14	)		(631	)		—		(867	)
Recoveries		110			38			79			46			22			259			—		554
Provision (credit)		484			(6	)		(37	)		72			(20	)		400			14		907
Provision for acquired loans		(89	)					4			(4	)		—			(38	)		—		(127	)

Ending balance	$	11,482		$	6,702		$	6,516		$	3,609		$	2,269		$	5,954		$	1,024	$	37,556

Period-end allowance allocated to:
Loans individually evaluated for impairment	$	1,473		$	—		$	—		$	211		$	911		$	208		$	—	$	2,803
Loans collectively evaluated for impairment		10,005			6,680			6,427			3,398			1,354			5,746			1,024		34,634
Acquired loans evaluated for impairment		4			22			89			—			4			—			—		119

Ending balance	$	11,482		$	6,702		$	6,516		$	3,609		$	2,269		$	5,954		$	1,024	$	37,556

Period-end loan balances evaluated for:
Loans individually evaluated for impairment	$	5,278		$	1,270		$	2,678		$	1,419		$	15,260		$	7,795		$	—	$	33,700	⁽²⁾
Loans collectively evaluated for impairment		957,863			839,819			893,036			194,654			161,610			336,053			—		3,383,035
Acquired nonimpaired loans		107,380			49,765			80,795			27,711			73,240			15,803			—		354,694
Acquired impaired loans		12,600			4,603			10,557			3,564			955			5			—		32,284

Ending balance	$	1,083,121		$	895,457		$	987,066		$	227,348		$	251,065		$	359,656		$	—	$	3,803,713	⁽³⁾

The following table provides the activity of the allowance for loan losses and loan balances for the three ended March 31, 2015:


(In Thousands)	Commercial			Owner-Occupied Commercial			Commercial Mortgages			Construction		Residential			Consumer			Complexity Risk ⁽¹⁾		Total
Three months ended March 31, 2015
Allowance for loan losses
Beginning balance	$	12,837		$	6,643		$	7,266		$	2,596	$	2,523		$	6,041		$	1,520	$	39,426
Charge-offs		(131	)		(330	)		(39	)		—		(125	)		(450	)		—		(1,075	)
Recoveries		26			4			79			49		11			201			—		370
Provision (credit)		316			722			(782	)		307		(29	)		234			18		786

Ending balance	$	13,048		$	7,039		$	6,524		$	2,952	$	2,380		$	6,026		$	1,538	$	39,507

Period-end allowance allocated to:
Loans individually evaluated for impairment	$	3,169		$	284		$	223		$	210	$	751		$	197		$	—	$	4,834
Loans collectively evaluated for impairment		9,879			6,755			6,301			2,742		1,629			5,829			1,538		34,673
Acquired loans evaluated for impairment		—			—			—			—		—			—			—		—

Ending balance	$	13,048		$	7,039			6,524		$	2,952	$	2,380		$	6,026		$	1,538	$	39,507

Period-end loan balances evaluated for:
Loans individually evaluated for impairment	$	11,707		$	1,552		$	7,595		$	1,419	$	14,749		$	6,157		$	—	$	43,179	⁽²⁾
Loans collectively evaluated for impairment		876,434			754,044			770,991			138,495		184,337			310,427			—		3,034,728
Acquired nonimpaired loans		31,737			39,671			36,373			9,680		16,615			7,640			—		141,716
Acquired impaired loans		3,192			2,133			5,877			3,630		496			8			—		15,336

Ending balance	$	923,070		$	797,400		$	820,836		$	153,224	$	216,197		$	324,232		$	—	$	3,234,959	⁽³⁾

⁽¹⁾	Represents the portion of the allowance for loan losses established to capture factors not already included in other components in our allowance for loan losses methodology.

⁽²⁾	The difference between this amount and nonaccruing loans represents accruing troubled debt restructured loans of $13.9 million and $22.5 million for the periods ending March 31, 2016 and 2015, respectively. Accruing troubled debt restructured loans are considered impaired loans.

⁽³⁾	Ending loan balances do not include deferred costs.

Summary of Nonaccrual and Past Due Loans

The following tables show our nonaccrual and past due loans at the dates indicated:


March 31, 2016 (In Thousands)	30–59 Days Past Due and Still Accruing			60–89 Days Past Due and Still Accruing			Greater Than 90 Days Past Due and Still Accruing			Total Past Due And Still Accruing			Accruing Current Balances			Acquired Impaired Loans			Nonaccrual Loans			Total Loans
Commercial	$	1,378		$	1,354		$	—		$	2,732		$	1,062,856		$	12,600		$	4,933		$	1,083,121
Owner-Occupied commercial		678			—			—			678			888,907			4,603			1,269			895,457
Commercial mortgages		127			—			—			127			973,786			10,557			2,596			987,066
Construction		—			—			—			—			223,784			3,564			—			227,348
Residential		4,332			418			—			4,750			238,482			955			6,878			251,065
Consumer		851			339			127			1,317			354,219			5			4,115			359,656

Total (1)	$	7,366		$	2,111		$	127		$	9,604		$	3,742,034		$	32,284		$	19,791		$	3,803,713

% of Total Loans		0.19	%		0.06	%		—	%		0.25	%		98.38	%		0.85	%		0.52	%		100	%


(1) The balances of above include $354.7 million of acquired nonimpaired loans.
December 31, 2015 (In Thousands)	30–59 Days Past Due and Still Accruing			60–89 Days Past Due and Still Accruing			Greater Than 90 Days Past Due and Still Accruing			Total Past Due And Still Accruing			Accruing Current Balances			Acquired Impaired Loans			Nonaccrual Loans			Total Loans
Commercial	$	1,686		$	270		$	12,355		$	14,311		$	1,028,973		$	12,985		$	5,328		$	1,061,597
Owner-Occupied commercial		713			217			4,886			5,816			869,048			4,688			1,091			880,643
Commercial mortgages		141			4			288			433			952,426			10,513			3,326			966,698
Construction		—			—			—			—			242,229			3,544			—			245,773
Residential		5,263			621			251			6,135			245,307			950			7,287			259,679
Consumer		1,222			36			252			1,510			354,599			7			4,133			360,249

Total (1)	$	9,025		$	1,148		$	18,032		$	28,205		$	3,692,582		$	32,687		$	21,165		$	3,774,639

% of Total Loans		0.24	%		0.03	%		0.48	%		0.75	%		97.83	%		0.86	%		0.56	%		100	%

(1)	The balances of above include $371.1 million of acquired nonimpaired loans

Analysis of Impaired Loans

The following tables provide an analysis of our impaired loans at March 31, 2016 and December 31, 2015:

March 31, 2016

(In Thousands)

Ending
Loan
Balances

Loans with
No Related
Reserve ⁽¹⁾

Loans with
Related
Reserve

Related
Reserve

Contractual
Principal
Balances

Average
Loan
Balances

Commercial

5,728

947

4,781

1,477

12,187

8,060

Owner-Occupied commercial

2,281

1,269

1,012

2,488

6,329

Commercial mortgages

3,980

2,678

1,302

6,626

2,412

Construction

1,419

—

1,419

211

1,419

1,448

Residential

15,421

8,618

6,803

915

18,395

15,215

Consumer

7,794

6,585

1,209

208

9,610

7,084

Total (2)

36,623

20,097

16,526

2,922

50,725

40,548

⁽¹⁾	Reflects loan balances at or written down to their remaining book balance.

⁽²⁾	The above includes acquired impaired loans totaling $2.9 million in the ending loan balance and $3.5 million in the contractual principal balance.


December 31, 2015 (In Thousands)	Ending Loan Balances		Loans with No Related Reserve⁽¹⁾		Loans with Related Reserve		Related Reserve		Contractual Principal Balances		Average Loan Balances
Commercial	$	6,137	$	951	$	5,186	$	1,168	$	20,206	$	9,391
Owner-Occupied commercial		2,127		1,090		1,037		22		2,947		2,111
Commercial mortgages		4,652		3,410		1,242		103		11,826		7,540
Construction		1,419		—		1,419		211		1,419		1,448
Residential		15,710		9,034		6,676		920		18,655		15,264
Consumer		7,665		6,498		1,167		200		9,353		6,801

Total (2)	$	37,710	$	20,983	$	16,727	$	2,624	$	64,406	$	42,555

⁽¹⁾	Reflects loan balances at or written down to their remaining book balance.

⁽²⁾	The above includes acquired impaired loans totaling $2.9 million in the ending loan balance and $3.5 million in the contractual principal balance.

Schedule of Commercial Credit Exposure

The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the Allowance for Loan Loss.

Commercial Credit Exposure


(In Thousands)	Commercial				Owner-Occupied Commercial				Commercial Mortgages				Construction				Total Commercial⁽¹⁾
																	Mar. 31, 2016					Dec. 31, 2015
	Mar. 31, 2016		Dec. 31 2015		Mar. 31, 2016		Dec. 31 2015		Mar. 31, 2016		Dec. 31 2015		Mar. 31, 2016		Dec. 31 2015		Amount		%			Amount		%
Risk Rating:
Special mention	$	6,992	$	5,620	$	11,982	$	9,535	$	8,900	$	12,323	$	—	$	—	$	27,874				$	27,478
Substandard:
Accrual		36,428		33,883		20,905		22,901		2,523		2,547		8,322		8,296		68,178					67,627
Nonaccrual		3,525		4,164		1,269		1,090		2,596		3,326		—		—		7,390					8,580
Doubtful		1,408		1,164		—		—		—		—		—		—		1,408					1,164

Total Special and Substandard		48,353		44,831		34,156		33,526		14,019		18,196		8,322		8,296		104,850		3	%		104,849		3	%
Acquired impaired		12,600		12,985		4,603		4,688		10,557		10,513		3,564		3,544		31,324		1			31,730		1
Pass		1,022,168		1,003,781		856,698		842,429		962,490		937,989		215,462		233,933		3,056,818		96			3,018,132		96

Total	$	1,083,121	$	1,061,597	$	895,457	$	880,643	$	987,066	$	966,698	$	227,348	$	245,773	$	3,192,992		100	%	$	3,154,711		100	%

⁽¹⁾	Table includes $265.7 million and $277.0 million of acquired nonimpaired loans as of March 31, 2016 and December 31, 2015, respectively.

Schedule of Consumer Credit Exposure

Residential and Consumer Credit Exposure


(In Thousands)	Residential				Consumer				Total Residential and Consumer⁽²⁾
	Mar. 31,		Dec. 31		Mar. 31,		Dec. 31		Mar. 31, 2016					Dec. 31, 2015
	2016		2015		2016		2015		Amount		Percent			Amount		Percent

Nonperforming(1)	$	15,260	$	15,548	$	7,794	$	7,664	$	23,054		4	%	$	23,212		4	%

Acquired impaired loans		955		950		5		7		960		—			957		—
Performing		234,850		243,181		351,857		352,578		586,707		96			595,759		96

Total	$	251,065	$	259,679	$	359,656	$	360,249	$	610,721		100	%	$	619,928		100	%

⁽¹⁾	Includes $12.1 million as of March 31, 2016 and $13.6 million as of December 31, 2015 of troubled debt restructured mortgages and home equity installment loans that are performing in accordance with the loans’ modified terms and are accruing interest.

⁽²⁾	Total includes $89.0 million and $94.2 million in acquired nonimpaired loans as of March 31, 2016 and December 31, 2015, respectively.

Schedule of Loans Identified as Troubled Debt Restructurings During Periods Indicated

The following table presents loans identified as TDRs during the three months ended March 31, 2016 and 2015.


(In Thousands)	Three Months Ended March 31, 2016		Three Months Ended March 31, 2015
Commercial	$	984	$	—
Owner Occupied Commercial		—		—
Commercial mortgages		—		—
Construction		—		—
Residential		614		212
Consumer		215		135

Total	$	1,813	$	347